# In the matter of Prime Retail India Ltd. C.P. (IB) No. 1127-KB-2019

> NCLT judgment dated 2019-08-27. Citation: TCN-2019-NCLT-01746. The operational creditor filed an application under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 27 Aug 2019
- **Citation:** TCN-2019-NCLT-01746
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prime-retail-india-ltd-cp-ib-no-1127-kb-2019-4f092ef2

## Summary

### Background

The operational creditor filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process against the corporate debtor due to unpaid operational debt for goods supplied.

## Facts

M/s. Swatch Group (India) Pvt. Ltd., the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Prime Retail India Ltd., the Corporate Debtor. The Operational Creditor claimed an unpaid operational debt of Rs. 9,53,64,236/-, including interest at 18% p.a. The Operational Creditor supplied watches to the Corporate Debtor under Retail Agreements dated November 22, 2013, and April 22, 2010, issuing separate invoices for each consignment. The Corporate Debtor failed to make payments for watches supplied since November 2018, resulting in an

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** An application under Section 9 of the IBC, 2016, is admissible if the operational

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**Reasoning:** The Corporate Debtor failed to pay the operational debt despite demands and admitted

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**Interpretation:** The court interpreted Section 9 of the IBC, 2016, to mean that if the

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**Application:** Given the Corporate Debtor's admission of non-payment, failure to dispute the

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Swatch Group…; M/s. Swatch Group…
- **Respondents:** Prime Retail…; M/s. Prime Retail…
- **Advocates:** For the Operationa…; Suhani Dwivedi,…; +1 more

## Timeline

- **November 22, 2013 — Retail Agr…**: Retail Agreement executed between the…
- **April 22, 2010 — Retail Agr…**: Retail Agreement executed between the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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